Mexico Awards First Offshore Exploration Tenders

Image courtesy of National Commission of Hydrocarbons.
Amid a global oil glut, Mexico’s first auction in 77 years was able to award only two offshore blocks. The government is hoping that future auctions will be more enticing.

The new era of Mexican oil exploration has officially begun, but not quite as the government had hoped.

Only 2 of 14 shallow-water blocks offered in the country’s first public tender were awarded in mid-July. Blocks 2 and 7 went to a consortium led by a ­Mexican-based startup, Sierra Oil. Its partners are Talos Energy of Houston and United Kingdom-based Premier Oil. Just seven firms made bids in the auction that Mexican officials predicted would be significantly more competitive.

The auction was conducted by the National Commission of Hydrocarbons (CNH) in Mexico City and served as the country’s historic return to the privatization of oil and gas exploration since the industry was nationalized in 1938.

The Mexican government believed at least four or five blocks would be successfully awarded and independent estimates were as high as seven. Juan Carlos Zepeda, president commissioner of the CNH, acknowledged that the government fell short of its goal to award 30% of the blocks.

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Mexico Awards First Offshore Exploration Tenders

Trent Jacobs, JPT Senior Technology Writer

01 September 2015

Volume: 67 | Issue: 9

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